Core Insights - Marqeta's shares increased by 14.2% following the release of strong third-quarter financial results that exceeded revenue and guidance expectations [1] - The company reported revenue of $163.3 million, representing a year-over-year increase of 27.6%, surpassing analysts' forecast of $148.8 million [2] - Marqeta's GAAP loss was $0.01 per share, aligning with Wall Street expectations, and the company provided a positive outlook for the fourth quarter with projected revenue of around $167 million, which is 5.6% higher than analysts' projections [2] - Operational improvements were noted, with the operating margin improving to -6.4% from -33% in the same quarter last year [2] Market Reaction - Marqeta's shares have shown volatility, with 11 moves greater than 5% over the past year, indicating that the recent news significantly affected market perception [4] - A previous notable decline occurred when Goldman Sachs downgraded the stock to 'Sell' from 'Neutral', citing concerns about Marqeta's reliance on its key customer, Block [5] - Goldman Sachs projected that Block's decision to add a new issuing partner could result in a 2% headwind to Marqeta's gross profit by 2026 and cut its price target for Marqeta's stock from $7.50 to $5.00 [5] Stock Performance - Since the beginning of the year, Marqeta's stock has risen by 31.8%, but it is still trading 28% below its 52-week high of $6.83 from August 2025 [6] - An investment of $1,000 in Marqeta's shares at the IPO in June 2021 would now be valued at $161.04 [6]

Core Insights - Marqeta is collaborating with Klarna to expand the Klarna Card into 15 new European markets, leveraging Visa's Flexible Credential technology [1][2] - The Klarna Card is being rolled out in multiple countries including the UK, Denmark, Germany, Norway, and Poland, and is also available in several other European countries and the U.S. [2] - Marqeta's platform has processed nearly $300 billion in annual payments volume in 2024, demonstrating its scalability and compliance capabilities [2] Company Overview - Marqeta is a modern card issuing platform that enables companies to create customized card programs and embed financial services into their branded experiences [2] - Klarna is a global digital bank and flexible payments provider with over 111 million users and 2.9 million transactions per day [3] - Klarna's network includes over 790,000 retailers, enhancing consumer payment options across various platforms [3] Partnership Dynamics - The partnership between Marqeta and Klarna is aimed at accelerating time-to-market and scaling operations across countries [2] - Marqeta became the first issuer processor in the U.S. certified for Visa Flexible Credential in July 2024, further solidifying its position in the market [2] - The collaboration is expected to continue growing, with both companies eager to innovate and expand their offerings [2]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Core Insights - Marqeta reported revenue of $163.31 million for the quarter ended September 2025, reflecting a year-over-year increase of 27.6% [1] - The earnings per share (EPS) was -$0.01, an improvement from -$0.06 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $148.97 million by 9.62%, while the EPS matched the consensus estimate of -$0.01 [1] Financial Performance Metrics - Total Processing Volume (TPV) reached $97.96 billion, surpassing the average estimate of $93.48 billion from two analysts [4] - Total platform services revenue was $155.77 million, exceeding the average estimate of $142.05 million, marking a 27.9% increase year-over-year [4] - Revenue from other services was $7.53 million, slightly above the estimated $7.37 million, representing a 22.1% year-over-year increase [4] Stock Performance - Marqeta's shares have declined by 11.3% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Insights - Marqeta reported a quarterly loss of $0.01 per share, aligning with the Zacks Consensus Estimate, and improved from a loss of $0.06 per share a year ago [1] - The company achieved revenues of $163.31 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 9.62% and up from $127.97 million year-over-year [2] - Marqeta's stock has increased approximately 17.7% year-to-date, outperforming the S&P 500's gain of 15.1% [3] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - Marqeta has topped consensus revenue estimates four times in the last four quarters [2] - Current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $157.85 million, and -$0.03 on revenues of $596.29 million for the current fiscal year [7] Market Outlook - The sustainability of Marqeta's stock price movement will depend on management's commentary during the earnings call [3] - The estimate revisions trend for Marqeta was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The Financial Transaction Services industry is currently ranked in the bottom 42% of Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over 3 percentage points from Q2 2025 [4][15][17] - Q3 net revenue was $163 million, growing 28% year-over-year, with gross profit of $115 million, a 27% increase year-over-year [5][18] - Adjusted EBITDA for Q3 was $30 million, achieving a margin of 19%, marking another all-time high for adjusted EBITDA dollars [6][22] Business Line Data and Key Metrics Changes - Lending use cases, including Buy Now, Pay Later (BNPL), saw TPV growth accelerate by 10 percentage points compared to Q2, with year-over-year growth rates approximately double that of the overall company [17][20] - Non-Block TPV is now growing 2.5 times faster than Block TPV, with Europe TPV continuing to grow over 100% year-over-year [16][18] - Expense management growth continues to outpace overall company growth, driven by customer acquisition of new end users [16][20] Market Data and Key Metrics Changes - The international business, particularly in Europe, is experiencing strong growth, with non-U.S. business representing a high teens percentage of TPV, up 5 percentage points from Q3 of the previous year [62] - Europe continues to deliver over 100% TPV growth, although this rate may not be sustainable as the base increases [62][66] - The on-demand delivery segment is growing significantly, with acceleration into double digits in Q3, primarily due to merchant category and geographic expansion [16][20] Company Strategy and Development Direction - The company aims to deepen customer relationships by enabling innovative programs and expanding geographic reach, while increasing bank supply [7][10] - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][66] - The company is focused on diversifying its business beyond debit and expanding internationally to drive future growth [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's trajectory, noting that TPV growth has accelerated for two consecutive quarters, indicating strong demand across various use cases [54][56] - The company anticipates challenges in Q4 due to the impact of contract renewals and potential changes in customer behavior, particularly with Cash App diversifying its new issuance [56][58] - Management expects to finish the year strong, raising expectations for Q4 and the full year based on Q3 results [25][28] Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [24] - The company ended Q3 with over $830 million in cash and short-term investments, driven by strong operating cash flows [23] Q&A Session Summary Question: What does the pipeline for new business look like? - Management indicated that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [33][34] Question: How significant is the TransactPay acquisition for European market expansion? - The acquisition simplifies the process for customers to expand into Europe and allows the company to compete in the premium market for enterprise customers [35][36] Question: What is the sustainability of the 100%+ growth in Europe? - While the growth rate may not be sustainable at over 100%, the company expects TPV growth in Europe to continue at a materially faster rate than the overall company [62][66] Question: Are there any anomalies in the current growth trajectory? - Management noted that while the trajectory is strong, there are factors such as contract renewals and unusual items that may impact future growth [56][58]

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over three points from Q2 2025 [4][15]. - Net revenue for Q3 was $163 million, growing 28% year-over-year, while gross profit was $115 million, a 27% increase year-over-year [5][18]. - Adjusted EBITDA was $30 million, achieving a margin of 19%, marking another all-time high for adjusted EBITDA dollars [6][22]. Business Line Data and Key Metrics Changes - Lending use cases, including buy now, pay later (BNPL), saw TPV growth accelerate by 10 points versus Q2, with year-over-year growth rates about double that of the overall company [17]. - Expense management growth continued to outpace overall company growth, driven by customer acquisition of new end users [16]. - On-demand delivery growth accelerated into double digits, primarily fueled by merchant category expansion and geographic growth [16]. Market Data and Key Metrics Changes - Europe continued to deliver strong results, with TPV growth remaining over 100% year-over-year, although this rate may not be sustainable as the base grows [11][63]. - Non-Block TPV is now growing two and a half times faster than Block TPV, with significant contributions from Europe [16]. - The international business, particularly in Europe, now represents a high teens percentage of total TPV, up five percentage points from the previous year [63]. Company Strategy and Development Direction - The company aims to deepen customer relationships by enabling innovative programs and expanding geographically, while increasing bank supply [7][10]. - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][66]. - The company is focused on diversifying its business beyond debit and expanding its presence outside the U.S. to drive future growth [14][66]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's trajectory, noting that TPV growth has accelerated for two consecutive quarters, indicating strong underlying business performance [54]. - The company anticipates challenges in Q4 due to the timing of contract renewals and potential diversification of new issuance by Cash App [56][57]. - Management expects to finish the year strong, raising expectations for Q4 and the full year based on Q3 results [25][28]. Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [24]. - The GAAP net loss for Q3 was $3.6 million, influenced by interest income and a non-recurring litigation-related expense [23]. - The company ended the quarter with over $830 million in cash and short-term investments, driven by strong operating cash flows [23]. Q&A Session Summary Question: What does the pipeline for new business look like? - Management indicated that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [33]. Question: How significant is the TransactPay acquisition for European market expansion? - The acquisition facilitates easier transitions for customers between North America and Europe, allowing for a more seamless offering and access to larger enterprise customers [36]. Question: What is the sustainability of the 100% growth rate in Europe? - While the 100% growth rate may not be sustainable, TPV growth in Europe is expected to continue at a materially faster rate than the overall company due to the addition of TransactPay [66]. Question: What are the implications of the renewal cadence for large customers? - Management expects two significant renewals to be completed before current contracts expire, with one expected in Q4 and the other in early 2026 [75]. Question: How does the company plan to leverage its partnerships for market expansion? - The company is focusing on multinational customers who can benefit from its modern platform, which allows for easy market transitions [82].

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over three points from Q2 2025 [4][16][18] - Net revenue for Q3 was $163 million, growing 28% year-over-year, with gross profit at $115 million, a 27% increase year-over-year [5][19] - Adjusted EBITDA was $30 million, achieving a 19% margin, marking another all-time high for adjusted EBITDA dollars [5][24] Business Line Data and Key Metrics Changes - Lending use cases, including buy now, pay later (BNPL), saw significant growth, with TPV growth accelerating 10 points versus Q2, and year-over-year growth about double the overall company rate [18][50] - Commercial programs, particularly those enabling SMBs, also experienced increased demand, highlighted by signing a Fortune 500 customer for electronic supplier payments [9][10] - Non-Block TPV is now growing two and a half times faster than Block TPV, with Europe TPV continuing to grow over 100% year-over-year [17][50] Market Data and Key Metrics Changes - Europe continues to deliver strong results, with TPV growth remaining over 100% year-over-year, driven by neobanking, lending, and BNPL use cases [11][50] - The international business now represents a high teens percentage of total TPV, up five percentage points from Q3 of the previous year [50] Company Strategy and Development Direction - The company aims to expand customer relationships by enabling innovative programs and seamless geographic expansion while increasing bank supply [6][10] - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][36] - The company is focused on diversifying its business beyond debit and expanding internationally to drive future growth [15][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trajectory, noting that TPV growth has accelerated for two consecutive quarters, with strong performance expected to continue [44][46] - The company raised its expectations for Q4 and the full year based on Q3 results, anticipating net revenue growth of 22%-24% in Q4 [27][29] - Management acknowledged potential headwinds from contract renewals and macroeconomic uncertainties but remains optimistic about growth prospects [47][48] Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [26] - The GAAP net loss for Q3 was $3.6 million, influenced by interest income and a non-recurring litigation-related expense [25] Q&A Session Summary Question: Inquiry about new business and contract ramping - Management noted that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [31][33] Question: Sustainability of growth rates - Management indicated that while growth rates may not be sustainable at current levels, they expect continued strong performance, particularly in lending and on-demand delivery [44][50] Question: Impact of TransactPay on European market expansion - The acquisition facilitates easier transitions for customers between North America and Europe, allowing the company to compete in the premium market [36][52] Question: Details on card-to-card relationships and market expansion - Management highlighted the strong relationship with Klarna and the significant growth observed in existing markets, with expectations for continued expansion into new markets [40][41] Question: Revenue yield comparisons across different markets - Management explained that gross profit take rates are relatively consistent across use cases, with variations primarily due to customer size rather than fundamental pricing differences [63][65]

Financial Performance - Total Processing Volume (TPV) for Q3 2025 reached $97,962 million, a 32.5% increase from $73,899 million in Q3 2024[133] - Net revenue for Q3 2025 was $163,306 million, up 27.6% from $127,967 million in Q3 2024[133] - Gross profit for Q3 2025 was $114,557 million, representing a 27.1% increase from $90,132 million in Q3 2024[133] - Adjusted EBITDA for Q3 2025 was $30,312 million, significantly higher than $9,019 million in Q3 2024, reflecting improved operational performance[133] - Adjusted EBITDA margin improved to 19% in Q3 2025, compared to 7% in Q3 2024[133] - Net loss for Q3 2025 was $(3,624) million, an improvement from $(28,643) million in Q3 2024[133] - Total operating expenses for Q3 2025 were $124,927 million, slightly lower than $132,363 million in Q3 2024[133] - Gross margin remained stable at 70% for both Q3 2025 and Q3 2024[133] - Net revenue for the three months ended September 30, 2025, was $163.3 million, a 28% increase from $128.0 million in the same period of 2024[158] - Total Processing Volume (TPV) for the three months ended September 30, 2025, reached $98.0 million, reflecting a 33% increase compared to $73.9 million in the same period of 2024[160] - Gross profit for the three months ended September 30, 2025, was $114.6 million, up 27% from $90.1 million in the same period of 2024, with a gross margin of 70%[163] - Net loss for the three months ended September 30, 2025, was $3.6 million, compared to a net loss of $28.6 million in the same period of 2024[158] - Total net revenue for the nine months ended September 30, 2025, was $452.8 million, a 22% increase from $371.2 million in the same period of 2024[176] - TPV for the nine months ended September 30, 2025, was $273.8 million, representing a 30% increase from $211.2 million in the same period of 2024[176] Operating Expenses - Total operating expenses rose by $114.7 million, or 48%, for the nine months ended September 30, 2025, with total operating expenses as a percentage of net revenue increasing to 79%[183] - Adjusted operating expenses for Q3 2025 were $84,245 million, compared to $81,113 million in Q3 2024, indicating a focus on cost management[133] - Operating expenses decreased by 6% to $124.9 million for the three months ended September 30, 2025, compared to $132.4 million in the same period of 2024[165] - Salaries, bonus, benefits, and payroll taxes decreased by $22.2 million, or 11%, primarily due to lower post-combination compensation expenses and increased capitalized costs[183] - Share-based compensation decreased by 28% to $25.7 million for the three months ended September 30, 2025, compared to $35.7 million in the same period of 2024[166] - Share-based compensation decreased by $24.6 million, or 24%, mainly due to higher forfeitures of stock-based awards[184] Cash Flow and Investments - Net cash provided by operating activities increased to $109.3 million for the nine months ended September 30, 2025, up from $33.4 million in the same period in 2024, driven by higher gross profit and lower operating expenses[211] - Net cash provided by investing activities rose significantly to $258.2 million for the nine months ended September 30, 2025, compared to $37.0 million in the same period in 2024, primarily due to $229.7 million in restricted cash acquired from the TransactPay acquisition[213] - Net cash used in financing activities increased to $316.4 million for the nine months ended September 30, 2025, from $165.0 million in the same period in 2024, mainly due to share repurchases under the 2024 and 2025 Share Repurchase Programs[215] Customer Concentration - The largest customer, Block, accounted for 44% of net revenue for the three months ended September 30, 2025, down from 47% in the same period of 2024[174] - The largest customer, Block, accounted for 45% of net revenue for the nine months ended September 30, 2025, down from 48% in the same period in 2024[193] Accounting and Policy Changes - The cumulative impact of revised accounting policy on Card Network incentives recognized from April 1, 2025, through September 30, 2025, was $5.5 million higher than previously recognized[149] Future Outlook - The company anticipates continued operating losses for the foreseeable future, reflecting significant historical operating losses[202] Acquisition - The acquisition of TransactPay was completed for a total purchase price of approximately $59.9 million, consisting of $53.0 million in cash at closing and $3.6 million in contingent consideration[203] Cash Position - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $830.5 million[201] - As of September 30, 2025, the company had $830.5 million in cash and cash equivalents, sufficient to meet working capital and capital expenditure needs for at least the next 12 months[207] - As of September 30, 2025, the company had $235.4 million in restricted cash, primarily related to customer funds held by TransactPay[208] Interest Rate and Currency Risk - A hypothetical 100 basis point change in interest rates would not have a material effect on the company's financial results due to the short-term nature of its investments[224] - Most sales and operating expenses are in U.S. dollars, indicating minimal exposure to foreign currency exchange risk[225]

Marqeta Earnings Supplement November 5, 2025 Marqeta Earnings Supplement 1 Safe Harbor Statement This earnings supplement contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this presentation include, but are not limited to, statements relating to Marqeta's quarterly and annual guidance; statements regarding Marqeta's business plans, business strategy and the conti ...